Motion Picture Daily (Jan-Mar 1940)

Alert, tion Picture Industry MOTION PICTWE First in and Impartial 47. NO. 21 NEW YORK, U.S.A., MONDAY, JANUARY 29, 1940 TEN CENTS RKO and Col. Balk Academy Over Shorts Refuse Entries, Condemn "Unfair" Competition Hollywood, Jan. 28. — Because of what they believe is unfair competition in the two-reel short subject awards division, both Columbia and RKO have refused to enter product in this section in the annual awards by the Academy of Motion Picture Arts and Sciences. Jules White of Columbia and Bert Gilroy, short subjects producer of RKO, unsuccessfully petitioned the Academy awards committee to make separate classifications for comedies in this event, and their decision came as a result of their refusal to permit their two reel black and white comedies to compete with historical shorts in color and other much higher budgeted productions. The Academy has three shorts divisions for awards — one reel, two reel and comedies. White for years has been attempting to have Academy leaders make a greater range of shorts awards. He said : "I make pictures for theatres, not for projection rooms." Warner 1st Quarter Profit Up $539,000 Net profit of $642,129, after all charges, is reported by Warner Bros, for the 13 weeks ended Nov. 25, 1939. This compares with a net of $103,804 for the same period the previous year. Before amortization and depreciation charges and Federal taxes, the net profit from operations was $2,343,637. Gross income for the November quarter, after eliminating intercompany transactions, was $24,741,166, compared with $25,418,166 in the same 1938 quarter. During the period $71,732 was credited to earned surplus. The earnings are equivalent to $6.27 a share on 102,277 shares of preferred stock and 14 cents a share on the 3,701,090 shares of common stock outstanding Nov. 25. Preferred stock dividends in arrears as of Dec. 1, 1939, amounted to $29.84 a share. Warners report cash assets of $6,909,383 on Nov. 25, and an unrealized foreign exchange credit of $586,702. British Film Chiefs Fix Trade's War Status Tomorrow London, Jan. 28. — British film industry Tuesday expects action of significance when the Films Council meets to consider the memorandum setting the industry's course during the war. Backbone of the legislative proposals, formulated by a council committee, is the Film Credit Bank, under which the British Treasury will arrange to finance British production. Informed sources indicate that approval of the plan by the British Board of Trade is almost certain. Meanwhile, the Cinematograph Exhibitors Association is watching the situation closely. It will meet British producers and American distributors separately Wednesday to study the situation in the light of new quota plans. The Board of Trade is expected to present a quota proposal based on expenditure rather than footage. Industry groups probably will be heard by the Board of Trade after it has studied the various proposals offered. The C.E.A. and the Film Industry Employes Council already have been promised a hearing. Interstate Circuit Closes 'Wind' Deal Interstate Circuit has closed with M-G-M for "Gone With the Wind" and the picture will open in 13 key cities of the large southwestern circuit on Feb. 7, R. J. O'Donnell of Interstate, said prior to his departure from New York for Dallas on Saturday. Hughes to Produce Two, Signs Hawks Hollywood, Jan. 28. — Howard Hughes, millionaire oil man, is returning to production within 90 days. He has signed a two-picture agreement with Howard Hawks, who will film one story by Ernest Hemingway and another by Ben Hecht. The films will be made at General Service studios and probably will be released through Warners. Judging of Entries In Quigley Awards Starts Tomorrow Judging of entries in the sixth annual Quigley Grand Awards contest will start tomorrow morning at the Hotel Astor. A record number of acceptances from home office and out-of-town industry executives to serve as judges have been received and it is expected that most of them will be on hand when judging starts at 11:30 A. M. Martin Quigley will be toastmaster at the luncheon following the judging. The entries to be considered for the annual Silver and Bronze Grand Awards are those which have earned the highest ratings during the four quarters of the 1939 Competitions, conducted by Managers' Round Table of Motion Picture Herald. Presentation of the year's highest honors will take place in Hollywood where a program of entertainment by (Continued on page 2) $85,000 Is Contributed At Federation Luncheon "I know no greater charitable agency than the New York and Brooklyn Federations of Jewish Charities," former Mayor James J. Walker told more than 500 men and women who crowded the North Ballroom of the Hotel Astor at a luncheon Friday, held under auspices of the amusement division of the Federation. A total of $85,000 in cash and pledges was contributed at the luncheon. David Bernstein and Major Albert Warner are co-chairmen of the division. George Jessel was toastmaster and John Golden presided. The former mayor was the guest of honor. Dais guests were : David Bern stein, Edwin S. Friendly, former N. Y. Supreme Court Justice Joseph Proskauer, Barney Balaban, Will H. Hays, Maurice Silverstone, Jack Cohn, Herman Robbins, B. S. Moss, Molly Picon, New York Postmaster Albert Goldman, Charles Silvers, Irving Berlin, Max Cohen and Commissioner of Licenses Paul Moss. Outlining the needs of the "largest network of humanitarian agencies in the world," former Supreme Court Justice Proskauer lauded the activities of the Amusement Division on behalf of "the orphan, the sick and the underprivileged among our neighbors here at home." In the complex life of a huge city (Continued on page 2) Fear Japan's Film Market Lost to U. S. Trade Bonds Ruptured; See Tokyo Monopoly Complete loss of the Japanese market to American films is seen by industry foreign trade authorities as a possible aftermath of the ending on Friday of the U. S. -Japanese trade treaty. Industry observers believe a situation not unlike that in Italy may arise if antiAmerican sentiment, already widespread in Japanese official circles, increases as a result of the lapse of the trade treaty and if no new trade accord is adopted. Establishment of a film importing and distributing monopoly in Japan is regarded as an almost certain development in such a case. A complete "force-out" of the American companies by Japan is not unlikely, according to this source. "There is virtually no probability of the situation getting better for American distributors," one trade official said, "and there appears to be every likelihood that it will get worse." Meanwhile, the situation eliminates (Continued on page 2) RKO Starts Anew; $8,000,000 Capital RKO started operations Friday free from the supervision of the U. S. District Court or trustee with a working capital of over $8,000,000 in cash. This capital is approximately double the current liabilities. In addition, the company has no outstanding indebtedness, its capital structure consisting only of preferred and common stock. All assets in the hands of the Irving Trust Co., trustee of RKO, with the exception of a cash reserve of some $80,000, for expenses, were (Continued on page 4) Hitler, Aides Satirized By Stooges Comedy Hollywood, Jan. 28. — The first comedy from Hollywood to have as its entire theme the satirizing of the Hitler-Goering-Goebbels rule over Germany will be a two-reel short subject, "You Nazty Spy," being released by Columbia next week, it was revealed today. Starring the three Stooges, the film, which studio kept under cover during (Continued on page 4)